Missoula Market Report: 2009

The median price of homes sold in the Missoula area in 2009 was $208,900, a 2.8% decrease from the 2008 median price of $215,000 and a 4.9% decrease from the 2007 median price of  $219,550.

1,018 homes sold during 2009, a slight 1.8% increase over the 1,000 homes sold in 2008 but still well below (36.9%) the peak sales year in 2006, when 1,593 homes sold in the Missoula area.

The slight increase in sales during 2009 was due almost exclusively to first-time buyers rushing to meet the previous end-of-November deadline for qualifying for the first-time home buyer tax credit. Note that home sales at the end of the 3rd quarter were well behind the 2008 pace - a dramatic spike in sales volume during the 4th quarter pushed us slightly over last years sales.

The inventory of available homes remained at all-time highs throughout 2009. On average, there were 1,022 homes on the market at the end of each quarter, a 2.9% increase over last years average of 993 homes.

The absorption rate of homes at the end of 2009 was 12 months, a very slight increase over the 2008 rate of 11.9 months and an indicator that the market continues to favor buyers but that it may be stabilizing.

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